THE LEGAL WORKPLACE 2020 - Workplace Insight

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THE LEGAL WORKPLACE 2020 - Workplace Insight
03

WHITE PAPER

  THE LEGAL WORKPLACE 2020
THE LEGAL WORKPLACE 2020 - Workplace Insight
ISSUE 03/2

  In 2013, Bates Smart published our first White Paper –
  The Legal Workplace. The data in this paper predicted
  changes to the legal workplace over the next four years
  - all of which have proven accurate.
  In this paper, we update our key findings and look to the
  next four years.

                                                Lawyers are leaving their offices
                                                INCREASINGLY, LAWYERS OF ALL LEVELS ARE LEAVING THEIR
                                                OFFICES AND EMBRACING AN OPEN, COLLABORATIVE AND

             KEY FINDING 1
                                                FLEXIBLE WORKPLACE.

                                                                    2013                                            2 02 0
                                                                     50%                                             10%

                                                                     75%                                             35%
                Open plan                                           2007                                            2016

                Office

                                                In 2007, 75% of legal staff were in offices.     By 2016, this has reduced again with only
                                                By 2013, this had decreased to 50%.              35% of legal staff remaining in offices.
                                                                                                 We forecast that by 2020, only 10% of legal
                                                                                                 staff will occupy offices.

                                                Lawyers are sharing space
                                                LAWYERS ARE SHARING SPACE MORE THAN EVER, BUT NOT IN THE
                                                SAME WAY AS OTHER INDUSTRIES.
                                                THE LEGAL WORKPLACE REMAINS A PLACE FOR FOCUSED WORK, AND

             KEY FINDING 2
                                                COLLABORATION OCCURS ELSEWHERE, OFTEN IN MEETING ROOMS.

                                                                    2013                                            2 02 0
                                                                     29%                                             34%

                Business wide collaboration                          22%                                             31%
                spaces (as a % of total area)                       2007                                            2016

                                                In 2007, only 22% of the legal fitout was      Between 2013 and 2016 this has increased by only 2%
                                                dedicated to business wide collaboration.      and we forecast that by 2020 this will reach 34%.
                                                By 2013, this grew to 29% of the total area.   Evidence suggests that how this space is used will change.
                                                                                               Staff will require less local meeting rooms and more
                                                                                               informal collaboration spaces as they acclimatise to new
                                                                                               spaces.
THE LEGAL WORKPLACE 2020 - Workplace Insight
ISSUE 03/3

                                      A new model has emerged
                                      IN THE NEW LEGAL WORKPLACE MODEL, TEAMS ARE MORE
                                      FLEXIBLE AND MOBILE. TRADITIONAL SILOS ARE BREAKING DOWN.
                                      THIS WORKPLACE HAS A HIGHER DENSITY, ENABLING FASTER

KEY FINDING 3
                                      KNOWLEDGE SHARING IN A MORE COLLEGIATE ENVIRONMENT.

                                               2007                                    2016                                   2020
                                             24 sqm pp                               16 sqm pp                            10-12 sqm pp

                                      We forecast that by 2020, some legal workplaces will start to approach 12 sqm per person. While some
                                      firms will experiment with denser layouts up to 10 sqm per person, their teams may find this challenging.

                                      The hospitality revolution is here
                                      LAW FIRMS ARE DEVELOPING CLOSER TIES BETWEEN THEIR STAFF
                                      AND CLIENTS, CREATING A MORE PERSONAL EXPERIENCE.
                                      THE RESULT IS AN INCREASE IN HOSPITALITY SPACES FOR BOTH

KEY FINDING 4
                                      CLIENTS AND STAFF.

     Area of client meeting and
     hospitality spaces                                                           14%                                            15%
     Staff and client shared spaces           6%
                                                                                    21%                                            30%
                                                                                   OF 14%                                         OF 15%

                                      In 2013 legal fitouts         By 2016 this area has more than                 A small increase to 15% by 2020
                                      dedicated 6% of their         doubled to 14%. The growth in this              would align the hospitality provisions
                                      total area to clients.        space is mostly dedicated to client             with the technology sector.
                                      None of this space was        hospitality.                                    Our data predicts a shift towards space
                                      shared with staff.            Of the total client area, 21% is                sharing with 30% of the area shared
                                                                    hospitality facilities shared with the staff.   between staff and clients.
Source: Bates Smart Legal Workplace
Database 2016
THE LEGAL WORKPLACE 2020 - Workplace Insight
ISSUE 03/4

                                                     LAWYERS ARE LEAVING THEIR OFFICES
             KEY FINDING 1

                                                     Law firms have been the last of the
                                                     professional services industries to embrace
                                                     a more flexible work environment, but that
                                                     has changed and changed rapidly.

     AREA PER PERSON IN LEGAL
       FIRMS IS DECREASING

     From 2007 to 2016 we have seen
     the average area per person drop
          from 24 sqm to 16 sqm.

            2007                 2016
          24 sqm pp            16 sqm pp

         BUT SOME FIRMS
     HAVE GONE EVEN FURTHER

    We have seen legal firms rival other
   professional services workplaces and
      decrease to 12 sqm per person.
    If this trend continues, this number
   could decrease to 10 sqm per person
                   by 2020.

                       2020
                   10-12 sqm pp

 Source: Bates Smart legal workplace database 2016
THE LEGAL WORKPLACE 2020 - Workplace Insight
ISSUE 03/5

                                                                                                 16%                                            13%
                                                                                                                        33%

                                                                                                 35%                                            29%

                                                                                         100%                           33%

CHANGES IN THE LEGAL                             Offices vs open plan
                                                                                                                 50%
WORKPLACE
                                                      Percentage in offices                                                                     58%
Over the last decade there has been a shift
                                                                                                 49%

from hierarchical and cellular layouts to                                                                               33%             35%
                                                      Percentage open plan
more open workplaces with an equal space
allocation.                                      Space allocation by rank
                                                                                             2000                   2013                   2016
Those that have retained their offices                Lawyers
have ensured flexibility is built into their
                                                                                         / 100% of Lawyers      / 50% of Lawyers       / 35% of Lawyers
                                                                                           in offices             in offices             in offices
workplace. Offices can convert to quiet rooms         Senior Associates                  / Space allocation     / Equal space          / Where offices
to allow firms to adapt to new ways of working                                             according to rank      allocation             are provided,
over the lifespan of the fitout.                      Partners                                                                           this is often for
                                                                                                                                         Partners only

                                                 Source: Bates Smart Legal Workplace Database 2016

                                                 WHY ARE THEY CHANGING?

                                                 Increasingly law firms are creating a more            In addition, law firms work hard to attract
                                                 functional and flexible work environment.             and retain highly educated, experienced
                                                 This involves reallocating individually owned         talent. Young staff want access to
                                                 offices (me space) in favour of shared                senior staff and their experience, valuing
                                                 spaces (our space). There are three main              interaction rather than eight hours of isolated
                                                 drivers for this change.                              work – cellular office environments support
                                                                                                       neither of these demands.
                                                 Double threat
                                                 Law firms are facing a double threat – an             The workspace as a business tool
                                                 uncertain global economy coupled with                 Real estate is the highest cost to a law
                                                 unprecedented competition.                            firm after salaries. Law firms have become
                                                                                                       increasingly aware that a significant
                                                 The global firms have moved in and are here           percentage of their workspace is under-
                                                 to stay, capitalising upon the relatively stable      utilised and therefore overpriced.
                                                 and strong Australian market and using it as
                                                 a ‘springboard’ to our Asian neighbours.              The drive is for the tenancy to work harder,
                                                                                                       increasing the utilisation of all of the spaces,
                                                 An increase in competition has led to more            including individual work areas.
                                                 fixed fee structures for legal work. Lawyers
                                                 are looking to collaborative work methods to          In addition, the legal workplace needs to
                                                 deliver efficiencies and believe an open plan         remain flexible to support change. The firm
                                                 environment can better support this work.             needs the ability to change configurations
                                                                                                       without construction costs every time a
                                                 Knowledge sharing / social factors                    team expands or contracts.
                                                 The primary resource of a legal office is
                                                 the combined knowledge and experience
                                                 of its staff. Firms are looking to access this
                                                 ‘human database’ rather than allow siloing
                                                 to continue.

                                                 PICTURED
                                                 Corrs Chambers Westgarth, Brisbane,
                                                 informal breakout
THE LEGAL WORKPLACE 2020 - Workplace Insight
ISSUE 03/6

                                                        LAWYERS ARE LEAVING THEIR OFFICES
             KEY FINDING 1

                                                        ‘Young talent is not interested in practicing
                                                         law in the old way. Ask some 25-year-old
                                                         law graduates how many of them enjoy
                                                         sitting locked in a small office doing data
                                                         reviews …"it’s a waste of money, brains
                                                         and talent.’
                                                        Source: Michael Roche, Former Lawyer and Head of UK management consulting firm Kerma Partners, speaking
                                                        at the 6th Annual Janders Dean Knowledge Management and Innovation Conference.

          WHEN PLANNING A
       LEGAL WORKPLACE THE
       ALLOCATION OF OFFICES
       IS THE MAJOR TOPIC OF
               DEBATE

           ‘Having an office
        doesn’t necessarily give
            you quiet time.’

           ‘I need to hide from
          people if I want to get
                work done.’

        ‘Without my office my
      productivity will plummet’

           ‘I want people who
            are measured by
         the size of their brains
             not their office.’

   Source: Quotes from Partners of major Australian
     law firms, obtained during briefing process

                                        PICTURED
                                    Allens, Brisbane,
                    reception and client waiting area
THE LEGAL WORKPLACE 2020 - Workplace Insight
ISSUE 03/7

                                                                                                                                                                70%

IN 2013, WE FOUND THAT                                                                                                         62%
THE MORE SPACE YOU OWN,                                                                             55%
THE LESS TIME YOU SPEND THERE
The amount of the workspace ‘owned’ by                              45%
individuals charted against the amount of           42%
time spent at the desk.                                     35%
                                                                                    32%
BY 2016, THIS HAS CHANGED
As firms seek a more flexible model where                                                   22%                        22%                             22%
workspace is interchangeable between                                                                           14%
different levels of staff, space for Partners                                                                                                  12%
and Senior Associates has decreased.

     2013 - % of workspace
     allocated per person                           2013 2016                       2013 2016                  2013 2016                       2013 2016
     2016 - % of workspace                                Partners                  Senior Associates                Lawyers                      Support Staff
     allocated per person

     Constant - % of work time
                                                    / Partners and Senior Associates spend between             / Lawyers and Support Staff spend between
     spent at desk
                                                      45% and 55% of time at their desk.                         62% and 70% of time at their desk.
                                                    / From 2013 to 2016, we have seen their space              / From 2013 to 2016, their space allocation has
                                                      allocation decrease in line with utilisation of space.     increased to reflect their additional usage and
                                                                                                                 ensure greater future flexibility to the firm.
Source: Bates Smart Legal Workplace Database 2016

                                                         IN ADDITION TO CULTURAL CHANGE THERE IS A DESIRE TO GET
                                                         MORE OUT OF THE WORKPLACE AS A BUSINESS TOOL

                                                         Legal firms are looking to get more use out of their office space rather than
                                                         having large offices sitting empty for over half the day. Technology and workplace
                                                         innovations are allowing greater flexibility in how and where lawyers work.

                                                                                1. Lawyers are noticing that the isolation of an
                                                                                   office doesn’t equal an ability to focus. Library
                                                                                   zones and quiet rooms offer a greater ability to
                                                                                   ‘getaway’ than staying in your office.
                                                            Isolation                                                                                Focus

                                                                                2. Legal work is often highly confidential and
                                                                                   the office was a way of securing paper files.
                                                                                   However, the highly confidential banking
                                                                                   sector has developed document management
                                                                                   systems and digital networks that secure data
                                                        Confidentiality            whilst enabling mobility and open plan work.                     Security

                                                                                3. Advances in technology and e-filing mean that
                                                                                   the office is no longer required to store walls of
                                                                                   files. Lawyers are embracing the time saving
                                                                                   and highly mobile attributes of digital record
                                                                                   keeping.
                                                        Paper storage                                                                                e-filing

                                                                                4. While the corner office is still a sign of
                                                                                   status and hierarchy for some, many high                              ...
                                                                                   performance CEOs have gone free range,
                                                                                   sharing their experience with their teams. With
                                                                                   increasing rents and pressure on profits not
                                                                                                                                                  Knowledge
                                                           Hierarchy               having an office is a badge of fiscal honour.
                                                                                                                                                   sharing
THE LEGAL WORKPLACE 2020 - Workplace Insight
ISSUE 03/8

                                                     LAWYERS ARE SHARING SPACE
             KEY FINDING 2

                                                     Aligned with the reduction in offices
                                                     has been an increase in shared spaces.
                                                     These spaces, such as breakout and team
                                                     meeting areas, are aimed at increasing
                                                     collaboration, networking and the breaking
                                                     down of knowledge silos.

    TRANSFER FROM INDIVIDUAL
        TO SHARED SPACE

        Since 2007, there has been
        an 18% space transfer from
    individually owned to shared space.

                       2007
       48% of space was individually owned
       with space allocated according to rank

                       2013
       40% of space was individually owned
          and all office sizes are equal

                       2016
       30% of space is individually owned and
             all workspaces are equal

 Source: Bates Smart legal workplace database 2016
THE LEGAL WORKPLACE 2020 - Workplace Insight
ISSUE 03/9

SPACE ALLOCATION
Since 2007 there has been a
dramatic increase in the amount of
space dedicated to collaboration.

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                                                                                                                                                                         30%
                                                In d i

                             2007                                                               2013                                                            2016

                                                                                                                                                                                              wne
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                                                vidually owned

                                                                                                                                                                                                  d
                                                                                                             40%

                                                                                                                           ned
                                          48%
      S ha

                    22%                                                                                                                                                  14%

                                                                                                                                                                                             es
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                                                                                           29%

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                                                                                                es   C li e c e s                                                    s
                                                                                                     s p  a
                             spa ces

In 2007 individuals ‘owned’ 48% of the floorplate                By 2013, we see a shift of 7% from staff spaces                 In 2016 this allocation of space has almost reversed
versus 27% allocated to shared and client spaces.                to shared spaces – only 30% of the floorplate was               the 2007 allocation. Only 30% of space is individually
                                                                 allocated to the individual versus 35% for client and           owned and 45% allocated to shared spaces.
                                                                 shared spaces.                                                  This represents a blending of spaces, as staff share
                                                                                                                                 their space with clients and clients share their space
                                                                                                                                 with staff.
Source: Bates Smart Legal Workplace Database 2016

                                                                                                                                 WHY ARE THEY SHARING?

                                                                                                                                 Over 5 years ago our data showed that
                                                                                                                                 employees in top performing companies
                                                                                                                                 spend 14% more time collaborating and
                                                                                                                                 25% more time learning than those in
                                                                                                                                 average companies.

                                                                                                                                 In addition, employees in average perform-
                                                                                                                                 ing companies spent 9% more time in
                                                                                                                                 isolated focused work.

                                                                                                                                 These top performing companies had 5%
                                                                                                                                 greater growth in profit and 4% greater
                                                                                                                                 growth in revenue.

                                                                                                                                 Put simply: sharing pays

                                                                                                                                 The new legal workplace understands this
                                                                                                                                 and is designed as a place for increased
                                                                                                                                 collaboration, knowledge sharing and
                                                                                                                                 innovation. Lawyers are working together
                                                                                                                                 to develop and share their knowledge base
                                                                                                                                 and client experiences.

                                                                                                                                 The ambition for increased collaboration
                                                                                                                                 must not come at the cost of the ability to
                                                                                                                                 focus. This still remains critical for lawyers.

                                                                                                                                 PICTURED
                                                                                                                                 Dibbs Barker, Sydney,
                                                                                                                                 breakout area / client and staff cafe
THE LEGAL WORKPLACE 2020 - Workplace Insight
ISSUE 03/10

                                                     LAWYERS ARE SHARING SPACE
              KEY FINDING 2

                                                     The reduction in the number of offices has
                                                     created space for shared facilities: team
                                                     meeting areas, large communal cafes,
                                                     quiet and focus rooms.

    FOCUS AND COLLABORATION

    The increase in shared spaces since
      2007 has been tailored to the
     changing requirements of the legal
                workplace.

                         ...

            Informal collaboration
          80% increase in the provision of
           2-4 person meeting spaces

                Social spaces
         100% increase in the provision of
            breakout/social spaces

                Focused spaces
           500% increase in the provision
           of small quiet, focus rooms -
                  replacing offices

 Source: Bates Smart legal workplace database 2016
ISSUE 03/11

                                                                                                                                   7%
                                                                                                  6%                      6%
                                                                                                                                                                   5%
                                                                                           4%
                                                                                   3%
                                                            2%                                                    2%                                       2%
WHICH SHARED SPACES                                                 1%
ARE INCREASING?
                                                    0%                                                                                            0%
From 2007 to 2013 we saw an increase in
both open collaboration and focused spaces.         2007 2013 2016                2007 2013 2016                 2007 2013 2016                   2007 2013 2016
By 2016, open collaboration spaces have                   Open                    Shared Breakout /                  Enclosed                          Enclosed
decreased by almost 50%.                              Collaboration                Social Spaces                    Collaboration                    Focus Rooms
Why?
Large open collaboration spaces are                 OPEN COLLABORATION SPACES -                                  ENCLOSED FOCUSED SPACES -
challenging for lawyers. They are too
                                                    FROM 2013 to 2016                                            FROM 2013 to 2016

disruptive for those in the adjacent                / 50% decrease in open collaboration spaces                  / 15% increase in enclosed collaboration spaces for
                                                                                                                   team meetings on workfloors
‘quiet’ workspace.                                  / 25% increase in staff shared breakout / social spaces
                                                                                                                 / 2.5x increase in 1-2 p focus rooms, in line with the
                                                                                                                   shift of more lawyers into open plan.
Source: Bates Smart legal workplace database 2016

                                                                                                              HOW ARE THEY SHARING?

                                                                                                              Since 2007 we have seen a significant
                                                                                                              increase in the number of shared enclosed
                                                                                                              spaces dedicated to team focus work.

                                                                                                              Rooms such as case / war rooms where
                                                                                                              teams can embed themselves are key to
                                                                                                              supporting lawyers in open plan layouts.

                                                                                                              As the cellular model breaks down we have
                                                                                                              also seen an emphasis on dedicated quiet
                                                                                                              rooms for individual focus work, away from
                                                                                                              distractions.

                                                                                                              There has also been a change in the type of
                                                                                                              open collaboration spaces:
                                                                                                              / Small open collaboration spaces
                                                                                                                immediately adjacent to the workspace
                                                                                                                remain critical for quick informal
                                                                                                                discussions
                                                                                                              / Larger centralised hubs (breakout spaces /
                                                                                                                cafes) aim to draw staff together from
                                                                                                                different teams in both social and work
                                                                                                                modes
                                                                                                              / Open plan layouts give staff an immediate
                                                                                                                visual connection across departments
                                                                                                                – something that is difficult to achieve in
                                                                                                                corridors of offices.

                                                                                                              PICTURED
                                                                                                              Maddocks Melbourne,
                                                                                                              void and interconnecting stair
                                                                                                              Following page:
                                                                                                              Maddocks Melbourne,
                                                                                                              external terrace
ISSUE 03/14

                                                           A NEW MODEL HAS EMERGED
              KEY FINDING 3

                                                           A new legal workplace model is emerging
                                                           where teams are more flexible and mobile
                                                           and traditional silos are broken down.
                                                           This workplace enables team flexibility
                                                           and knowledge sharing in a more
                                                           collegiate environment.

    AN INTEGRATED WORKPLACE                                THE CHANGING STRUCTURE OF THE
                                                           LEGAL WORKPLACE IS DESIGNED TO
      Changes to the legal workplace                       SUPPORT A NEW LAW FIRM MODEL
     accompany changes to the culture
          of knowledge sharing.
                                                           Traditional Model                                  The challenge in this model is that it only
                                                           In 2000 the Traditional Fixed Team was the         encourages interaction between teams
                                                           dominant legal firm model.                         located on the same floor. Partners know
                                                           / This model had a clear division of teams         who to contact to tap into an existing
                                                             within the firm (corporate, taxation etc)        knowledge base, but interaction between
                                                             and a strong hierarchy within each team          others in the firm is minimal. Silos between
                                                             (Partner, Senior Associate etc).                 teams still exist.
             TRADITIONAL MODEL                             / This model was supported by a cellular
                                                             environment with limited firm or team            The Emerging Model
                The fixed team
  Siloed structure. This is the traditional legal model.     collaboration spaces.                            The Emerging Model aims to break down
         Lawyers are allocated to a team and                                                                  the remaining silos between all members
             those teams work in isolation.                                                                   of the firm so that every member of staff is
                                                           Intermediate Model                                 aware of the function and capacity of, not
                                                           Over time, firms have restructured with a          only their own teams, but all other teams in
                                                           view to increasing knowledge transfer, both        the firm.
                                                           within teams and between teams. This
                                                           saw the emergence of a new model – the             How? By opening up the workplace and
                                                           Mixed Team.                                        allowing teams to be flexible and mobile,
           INTERMEDIATE MODEL                                                                                 creating sightlines between floors and easy
              The mixed team                               This model aims to encourage not only the          access via internal stairs, and by creating
            Starting to break down the silos.              top down transfer of knowledge but to also         spaces to temporarily integrate team
  This model encourages further interaction between        capture the benefits of different teams within     members who need to share knowledge and
      practice groups but is limited to senior staff.      the law firm working together and sharing          create a collegiate environment. We know
                                                           their learning, experiences and clients. The       this as the Integrated Team.
                                                           workplace reflected these changes with the
                                                           emergence of more shared spaces:
                                                           / A larger client floor with team training areas
                                                             and a large boardroom to cater for client
                                                             and entire staff functions
               EMERGING MODEL                              / Breakout hubs on each work floor aimed
                Integrated teams                             at bringing staff together
            Silos are further broken down.
                                                           / Team war rooms on each level aimed at                                                  PICTURED
          All levels of staff develop networks
          to access expertise within the firm.               accommodating both smaller meetings                                              Opposite page:
                                                             and high intensity work functions.                                                 Sparke Helmore,
                                                                                                                                             staff and client cafe
ISSUE 03/16

                              A NEW MODEL HAS EMERGED
              KEY FINDING 3

                              The Integrated Team layout provides
                              a flexible arrangement of spaces which
                              satisfy each of the work modes"–"focus,
                              collaboration, learning and social spaces.

                              WHAT DOES THIS MODEL LOOK LIKE?

                              The traditional cellular fitout is replaced by   The challenges
                              open workspace clusters / neighbourhoods         For law firms (as with many industries)
                              with good sightlines.                            adopting a more open environment poses
                                                                               three main challenges:
                              There is a plentiful distribution of open and    1. Ensuring adequate acoustic separation
                              enclosed collaboration spaces for both           2. Finding privacy and quiet when required
                              individuals and teams within close reach of      3. Maintaining confidentiality.
                              work desks.
                                                                               These challenges are not insurmountable
                              These spaces are designed to be flexible,        and can be solved by intelligent design:
                              modular ‘built spaces’ which are easily          / Generous, customised desks with offset
                              adjusted to suit the needs of individual           design to aid acoustics and privacy
                              practice areas or departments.
                                                                               / A high ratio of quiet rooms as well as larger
                                                                                 enclosed rooms for longer term use by
                              The benefits                                       teams working together
                              The benefits of this layout are numerous:        / Technology for file storage and digital
                              / Efficient use of floor plate                     security, enabling ease of mobility between
                              / A more flexible and mobile work environment      spaces.
                              / Facilitation and encouragement of
                                mentoring, skills development and real time    Flexibility is Key
                                knowledge sharing                              Many law firms are testing whether a more
                              / A greater connectivity between staff, within   open environment will suit their workstyle
                                teams and across practice areas                and culture. As such, their workspaces are
                              / Open communication, creativity and             designed with maximum flexibility. Built
                                innovation and skilled minds working           space is designed to be interchangeable - a
                                together.                                      simple move of a desk can convert space
                                                                               from an office to a quiet room to a team
                                                                               room.

                                                                               This design allows teams to select the way
                              PICTURED                                         they want to practice from day one and to
                              Corrs Chambers Westgarth, Melbourne,             change or evolve over time.
                              interconnecting stair with meeting areas
                              Opposite page:
                              Dibbs Barker, Sydney,
                              reception and client waiting area
ISSUE 03/18

                              THE HOSPITALITY REVOLUTION IS HERE
              KEY FINDING 4

                              As law firms look to strengthen client
                              relationships there is a focus on in-house
                              entertaining in signature spaces.
ISSUE 03/19

                                                                                                  14%                                             15%
                                                            5%
FRONT OF HOUSE CLIENT SPACES                                                                        21%                                             30%
HAVE INCREASED SIGNIFICANTLY
                                                                                                   OF 14%                                          OF 15%
Since 2007 the configuration of client spaces
has changed dramatically. Previously this was
a series of enclosed rooms isolated from staff.
The new Legal Workplace offers a suite of
                                                    In 2007 legal fitouts          By 2016 this area has more than                 A small increase to 15% by 2020
                                                    dedicated 5% of their          doubled to 14%. The growth in this              would align the hospitality provisions
front of house spaces that are often shared         total area to clients.         space is mostly dedicated to client             with the technology sector.
with staff.                                         None of this space was         hospitality.                                    Our data predicts a shift towards space
                                                    shared with staff.             Of the total client area, 21% is                sharing with 30% of the area shared
                                                                                   hospitality facilities shared with the staff.   between staff and clients.
Source: Bates Smart legal workplace database 2016

                                                    In our initial White Paper, we predicted                       Conversely clients are offered views into
                                                    “the hospitality revolution is coming”. Our                    open plan work areas to display the depth
                                                    database now shows it has arrived.                             of talent.

                                                    A RANGE OF EXPERIENCES                                         SHARING KNOWLEDGE

                                                    Law firms have always focused on their                         A resurgence in knowledge ownership has
                                                    client's experience and we have seen their                     resulted in increased demand for large scale
                                                    preference vacillate between in-house and                      seminar and cocktail event spaces.
                                                    external dining.
                                                                                                                   These areas require flexibility so they can be
                                                    Over the past four years, the emphasis                         used throughout the day.
                                                    has been on a broader range of in-house
                                                    hospitality offerings. Baristas, sky terraces                  Using operable walls they often adjoin
                                                    and fine dining prevails as firms look to a                    reception and open out for large client
                                                    personable and unique experience, akin to                      cocktail or town hall staff meetings.
                                                    that of a five star hotel.
                                                                                                                   These spaces can also open up further to
                                                    MEET OUR TEAM                                                  the staff café / breakout space to create
                                                                                                                   unique large scale entertaining spaces.
                                                    Clients are looking to better know the
                                                    lawyers with whom they work. They want to                      FLEXIBILITY
                                                    be part of a team whose business is not too
                                                    different from their own.                                      In all of these configurations flexibility is
                                                                                                                   paramount. By combining key areas, law
                                                    To this end, firms are blurring traditional                    firms are both increasing their capacity for
                                                    boundaries between staff and client areas.                     entertaining and increasing their space
                                                    Staff are being invited to share some of the                   utilisation.
                                                    client hospitality spaces, signalling to them
                                                    their value to the firm.                                       They are dedicating more space to client
                                                                                                                   areas, but making it work harder.
                                                    PICTURED
                                                    Corrs Chambers Westgarth, Melbourne,
                                                    reception and client waiting area
                                                    Following page:
                                                    Corrs Chambers Westgarth, Melbourne, staff and client cafe
                                                    Ending page:
                                                    Corrs Chambers Westgarth, Perth, meeting room
ISSUE 03/22

  LOOKING EVEN FURTHER AHEAD TO 2030 ...
  Legal markets are undergoing disruption with new models
  of service emerging. There is pressure to decrease margins,
  increase productivity and improve client service standards.
  What does this mean for the workplace?

  LAW FIRMS CAN LEARN FROM TECH DISRUPTORS

  While 'robo-lawyers' remain in the distant future many time consuming and routine
  legal tasks are already being automated.

  To understand the impact of technology on the legal workplace, we look to other
  professions where technology has already had an impact.

  THE FIN-TECH WORKPLACE                        Fin-Tech achieves this level of workplace         3. Space utilisation - If law firms commit
                                                flexibility with three key initiatives:           today to a lease, they need to build in the
  In the last five years advances in                                                              flexibility to grow or contract in the future.
  technology has revolutionised the             1. Agile Spaces - Technology workplaces
  financial workplace, coining the term         ensure business agility with the ability to       Flexible desking arrangements can allow a
  fin-tech.                                     contract and expand their teams in different      business to increase capacity by up to 20%
                                                departments at the same time. For this to         just by adding chairs and monitors, and
  Fin-tech companies are now in a war           occur they need to minimise specialised           decreasing personal space.
  for talent, trying to hire programmers        spaces, but support unique requirements.
  away from tech firms. Their workplaces                                                          This will require a high ratio of support
  often look more like start ups as they        This is achieved with reconfigurable spaces.      spaces to offset the increase in density.
  huddle in stand up meetings and work          For example, an office can change to a
  in close knit teams.                          meeting room in under an hour. This allows        Also, key infrastructure such as reception or
                                                different teams to occupy the same kit of         comms rooms should be located centrally
  While t-shirts and ping pong may seem         spaces in different ways.                         within the stack, in case floors are sublet.
  a long way from the legal workplace,
  there are some striking similarities:        2. Mobile Staff - The overall structure of
                                                                                                  AS COST PRESSURES INCREASE,
                                               firms will change. Divisions between practice
                                                                                                  EVERY SQUARE METRE OF A LEGAL
  / A similar workstyle requiring long         groups will become more flexible. Teams
                                                                                                  FITOUT WILL BE QUESTIONED AND
    periods of individual, quiet, focused work need to be more mobile to flex or contract         NEED TO BE JUSTIFIED.
                                               as demand for particular services arise.
  / Ownership by a group of partners who
    share equity in the business                                                                  1. There will no longer be the space to store
                                               Staff can easily move matter by matter to             unnecessary paper and files, thrusting
  / Individual contracts for a broad client    sit next to those with whom they work.
    base ranging in size                                                                             lawyers into the digital age.
                                               Long term 'ownership' of desks and offices
  / The need to specialise across a wide       inhibits the speed with which teams can
    variety of sectors                         reconfigure. Storage is the key.                   2. Staff and social spaces will increase, but
                                                                                                     these will increasingly be shared across
                                                                                                     the entire fitout.
  Which begs the question, how do               Storage = ownership = staff that are
  fin-tech firms accommodate the future         difficult to move.                                3. Many businesses share support
  and is this relevant to law firms?                                                                 functions with other tenants, reducing the
                                                By reducing and centralising storage, staff          demand for space. Building owners are
  FLEXIBILITY IS PARAMOUNT                      are less tethered to their desks and mobility        increasingly offering large meeting suites
                                                is no longer a barrier to a project (or matter)      to entice tenants.
                                                based environment.
  There is one certainty in this changing
  legal landscape; it will continue to change
  and evolve. The workplace model that a
  law firm selects today, will change in the
  future, often within the life of a tenancy.
                                                Let’s touch base again in 2020 to see if we're on track for 2030"…
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